Articles by Rishika Agarwal

World

Explained: Carmakers moving away from rare earth metals amid supply squeeze

Amid growing supply concerns and changing policies around China’s rare earth exports, many automakers across the world are moving toward components that can either replace rare earth metals or reduce their use. Automakers in the US and Europe are studying alternative materials that could substitute rare earth magnets in various vehicle parts, including windshield wiper motors and seat adjustment systems, according to the New York Times.Why is rare earth crucial?Rare earth metals are a crucial component in the production of electric vehicles (EVs) and hybrids, which are increasingly becoming popular. Rare earth elements like neodymium and dysprosium are used to make strong and efficient permanent magnets inside the motors. These magnets help EVs run with more power, use less energy, and travel longer distances on a single charge. They also allow the motors to stay small and light, which makes the vehicles more efficient. Neodymium and praseodymium are mixed to make strong magnets that help the motor produce high power. Dysprosium and terbium are added to these magnets to help them work well even at very high temperatures, such as when the vehicle accelerates or carries a heavy load. However, due to irregular supplies of these rare earth metals, the industry remains vulnerable to shortages, which could also bring assembly lines to a halt.What are major automakers doing?Many automakers worry that rare earth metals may become hard to get in the future. Because of this, they are choosing one of two paths: either finding new suppliers or switching to motor designs that do not need rare earths at all. As a result, several major companies have started looking for alternatives. BMW already uses electric motors that work without rare earth metals. According to the New York Times, researchers at Northeastern University are even trying to create new magnetic materials that are found only in meteorites, which could one day replace rare earth magnets. ALSO READ: What are CAFE norms and why are small carmakers worried about them? General Motors is taking the first approach by securing its supply. It has partnered with MP Materials, a company mining rare earths in California. GM has agreed to buy most of the output from this Texas facility for use in its Cadillac and Chevrolet electric vehicles. At the same time, GM is also exploring motor parts that don’t require rare earths. However, concerns remain that carmakers might end up paying more if shortages ease in the future and prices fall again. In India, Ola Electric claimed that it has found a way to keep the dragon out of the picture altogether. The company claims to have developed its own ferrite motor, which uses materials found in India and does not require rare earths. This new motor has reportedly passed government testing for its 7 kW and 11 kW models, and the results show that its performance matches motors that use rare earth permanent magnets.Who dominates rare earths exports?According to an EY report, China is the biggest producer of rare earths, with 68.6 per cent of global output. The US is second with 12.3 per cent. Both countries mine much more than their actual share of reserves, which shows that their resources are heavily used. Because of this, both China and the US are now looking for new rare earth rich areas to secure future supplies.China’s stand on rare earth exportsChina controls most of the world’s rare earth market and has used this power in politics. This year, it tightened export rules in response to US tariffs under President Donald Trump. Some of these limits were relaxed later during discussions with the US, but the possibility of new restrictions remains as tensions continue. India also felt the impact. Chinese supplies slowed down, and some Indian companies had to wait nearly six months to receive import licences again. According to the Mint, India’s imports of permanent magnets, mainly from China, fell sharply in the first half of FY26, dropping 56 per cent compared to the same period last year. This, however, is not the first time China’s dominance has spread concerns. In 2010, it cut supplies, following a dispute with the US. During the 2020 pandemic, global shortages highlighted the danger of depending heavily on one country for critical materials.Where does India stand?India has around 6.27 per cent of global rare earth reserves but produces only 0.83 per cent of the world’s output. To realise the Viksit Bharat goal, the government is working to increase mining and processing within the country. The EY report says India already has large reserves; it mainly needs to improve the speed of extraction and build local processing capabilities.What is the government doing?The government launched the National Critical Mineral Mission earlier this year. Under this mission, the Geological Survey of India will conduct 1,200 exploration projects between FY25 and FY31. The Atomic Minerals Directorate is also surveying coastal and river sands to find more rare earth deposits. Additionally, IREL Limited, a government company, has been given the responsibility to produce high-purity rare earth oxides from monazite, helping India reduce its dependence on imports.